Accounting glossary
What is safety stock?
Extra inventory held against demand spikes and late deliveries — the buffer between a busy Saturday and an empty shelf. Statistically it is a service-level choice: more nines of availability cost more shelves of stock.
Example
A line sells 12 a week with a 3-week lead time, so 36 units covers normal demand. Holding 12 more as safety stock absorbs a busy week or a late delivery.
Safety stock is the price of not disappointing a customer, and like any insurance it is worth what a stockout would cost.
In SeroBooks
Maya's reorder recommendations include a safety-stock component computed from your demand variability. Maya forecasting →